The Ethereum [ETH] bulls have passed the $3,200 test and are aiming for the psychological levels of $35,000 and $4,000.

Technical analysis by AMBCrypto shows that the $3,562 region may be the key for the next impulsive move.

Increased network activity and trading volume highlight the demand for the network. After the recent rebound, the Ethereum price forecast is strongly bullish in the higher time frames.

The Importance of $3,562 in the Higher Time Frames

A week ago, Ethereum seemed to break below the ascending triangle pattern. This was a bearish signal, but the price quickly reversed and has since risen 43.1% since last Tuesday.

This suggests the breakout was a false move, and interpreting the past two months as a range formation would be more accurate.

The OBV has broken above the three-month highs, approaching the June levels. The RSI is at 79.5, indicating a strong bullish momentum.

ETH may need a few days to consolidate, especially after facing resistance in June and July.

On the weekly chart, $3,562 is the lower high that signaled the downtrend after July. If this level is breached, the next price target for ETH will be $4,000.

Ethereum is Likely to Rally Further

AMBCrypto's analysis of the six-month lookback liquidation heatmap found that the liquidity band reached the $4,000 mark.

Notably, the July high of $3,562 - this is crucial on the weekly chart and is a concentrated liquidity pool.

The sparse liquidation levels to the south suggest that Ethereum is more likely to be pulled higher in the coming days and weeks. Traders should watch for volatility in the lower time frames.